TOKYO: Japan's JFE Steel, a unit of JFE Holdings Inc, said on Tuesday it has halted the feasibility study for a steel plant project in Vietnam and cancelled the memorandum of understanding with the project's partner, Taiwan steelmaker E United group.

JFE, Japan's No.2 steelmaker, has said it was considering taking a majority stake in the project to construct a plant with steel sheet production capacity of 3.5 million tonnes that could go onstream in 2016. But the final decision had been delayed due to the prolonged supply overhang that grips Asia.